"...a different story altogether"

Yesterday's Telegram and Gazette reported some “encouraging” news in that “The low bid for the Town Hall/Center Office Building renovation project came in at $800,000 more than the original appropriation two years ago and $800,000 less than was recently feared.”

It is certainly hard to argue – at least on the surface - that the picture previously painted by the Architect in terms of a $5.9 million expenditure for the project is not as bleak as previously “feared”. Some view this news as cause for celebration and evidence that we are on the right track in proceeding forward with the proposed renovations. Clearly, there is merit in such a position when viewed in the micro-vision of a single expenditure, void of a more global examination.

Four members of the Board of Selectmen, based upon the Town Administrator’s recommendation, voted to proceed with the proposed renovations void any alternatives for consideration by Sturbridge voters. In so doing, residents have been provided with an all or nothing approach in addressing this issue. Moreover, one could argue that our leadership has demonstrated a lack of understanding as to what is happening nationally and locally.

Last week alone, over 600,000 jobs were lost in the U.S. and in the month of December U.S. companies slashed more jobs than at any time since 1974. Our current unemployment rate of 7.6% is predicted to reach 9-10% within the next year by many economists. Home foreclosures rates (which have already increased 225% since 2006) will continue to rise in response to escalating unemployment and this will prove even more detrimental to the overall economy.

The good news however, is that the Town Administrator estimates “the impact on the average single-family home is expected to be about $78.70 a year…based upon the current numbers”. Clearly, this “impact” appears to be of little consequence when viewed in the context of a mere $80.00 per year increase. Yet, viewing this, or any municipal expenditure with such a narrow field of vision is an approach grounded in economic folly.

Massachusetts is currently considering a .29 per gallon gasoline tax. The average driver – based upon two tank fills per week - will see an approximate increase of $8.00 - $10.00 per week, or roughly $38.00 per month. These estimates by the way are very conservative numbers. Factored into a potential gas tax increase is escalating food prices (5.9% over last year), increased health insurance costs (2.9% increase last year), reduced or eliminated Cost of Living Adjustments (COLA) for many on fixed incomes, as well as increases in clothing, utilities, etc.

Moreover, one mustn’t lose sight of local tax increases that have yet to manifest. Based upon the Town Administrator’s projections, many in the community will soon face an annual tax increase of over $300.00 for the construction of a new and much needed Wastewater Treatment Facility. This is a financial burden yet to be shouldered by those residents on town sewer. Absent as well in the Town Administrator’s announcement is the cost of rental space for town offices during the renovation process.

We now face – based upon the Town Administrator’s projections - an estimated $200,000 shortfall in our landfill cap account and those funds must be secured by year’s end in order to properly cap cell # 2. Though perhaps not a direct tax increase, those funds will be taken from other accounts that will result in decreased overall cash, which might have been used for needed services.

Recently, during a joint budget meeting including the B.O.S. and the FinCom, we were witness to sharp reductions in services by most, if not all municipal departments. Police, Fire, and DPW stripped significant funds from their budgets, while the Recreation Department was forced to further increase fees in order to provide summer programs.

Yet, while all municipal departments are tightening their belts and reducing or eliminating both essential and non-essential services, the leadership of this community is asking you and I to loosen our belts and open our wallets for a project that is fraught with danger.

Despite any estimates presently being considered, one must bear in mind that we have yet to swing a hammer or open a wall. Once construction begins, we will inevitably be faced with escalating costs for the unforeseen or unknown issues associated with both of these buildings. And rest assured, our leadership will be coming back to residents for additional funds.

Once we arrive at that point (and surely we will), the argument then presented will be that we have traveled to a point of no return, and to turn away at that point would surely be an unwise choice. Thus, taxpayers will feel obligated to complete the project or be stuck with an unfinished pink elephant. Clearly, logic will then dictate approval of additional tax increases. One has to wonder if in fact some might be “banking” on such an approach.

I would invite our leaders to take some time to research the number of foreclosures, auctioned, for sale, and distressed (behind on payments) homes currently in Sturbridge. Perhaps they might speak with people who have lost their life savings or are in jeopardy of losing, or have already lost their jobs.

I encourage them to have a conversation with those who have seen wage reductions coupled with benefit losses and dramatic increases in necessary expenses. Is our leadership willing to have a conversation with those who have lost their incomes and are now behind on mortgage or rent payments?

Perhaps they’ll take the time to sit with those who have already seen their homes foreclosed, auctioned, or short sold. Maybe they’ll pull up a chair next to a senior who must now choose between food, heat, or medicine while struggling silently in despair. I invite the leadership of this community to take the time to speak with these folks and learn what’s truly happening in the day to day lives of those who jobs or incomes aren’t quite so secure.

Please, speak with these folks who are truly shoulderinig the crisis of this economy. These residents are all around us and with each day as the economy further deteriorates so too does their hope. I would argue that if our leadership is unaware of the pain these residents are facing, then perhaps, just perhaps, they may not know this community that well after all.

When the original funding for this project was approved in April of 2007 – which I supported - the unemployment rate was 4.5%; today it stands at 7.6% with predictions of 9-10% by years end. Our Town Administrator is clearly on target when he says that “…six months down the road it might be a different story altogether”.

The fact is, by every measure used to track the economy, it will be much, much worse. Unemployment will have increased, so too will have mortgage foreclosures, along with deepening erosions in employment benefits to those already struggling to make ends meet. Yup, "six months down the road" it will in fact "be a different story altogether".